On Friday, flash media maker Lexar Media (LEXR) obtained a higher revised takeover bid from Micron Technologies (MU). The revised bid destinations the all-inventory exchange supply at around $ten a share, up marginally 정보이용료 with the Original bid.
But major shareholders such as billionaire Trader Carl Icahn coupled with hedge money and portfolio managers have considered the Original bid to become inappropriate. Elliott Associates thinks the Original bid “considerably undervalues Lexar,” and feels Lexar is value amongst $one.5 billion and $2.four billion. The estimate is effectively earlier mentioned the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way far too lower and should be rejected by shareholders. Micron wants to spend close to one.10x sales for Lexar whilst the marketplace leader SanDisk (SNDK) is trading at four.35x revenue. Lexar also has a $400 million patent infringement lawsuit towards Toshiba that it had Earlier received but is now topic to an charm by Toshiba.
Consider it using this method, a successful $400 million settlement in favor of Lexar would equate to about $4.83 per share in additional hard cash to add to The existing $0.54 in absolutely free money just after credit card debt that Lexar has. This suggests Micron would pay a lot less than $5 a share for Lexars assets, which can be very low.
There exists also speculation that SanDisk is seriously contemplating getting a run at acquiring Lexar. This could seem sensible because SanDisk would solidify its leadership placement.
In addition, SanDisk has a detailed Operating romance with Toshiba, which could see SanDisk http://www.thefreedictionary.com/소액결제 drop or lessen the settlement if it managed to acquire Lexar.
Stay tune. A Particular shareholder Assembly to overview the takeover bid has actually been moved to June 16. In my view, the $10 bid undervalues Lexar. Dilemma is will a white knight area?